Iraq may bypass AWB to Australian wheat

Iraq today indicated it could seek wheat from Australian
suppliers not connected with AWB after cancelling a tender with the
US.

The Iraq Grains Board (IGB) has suspended dealings with the
Australian monopoly wheat exporter pending the outcome of the Cole
commission into the AWB's kickbacks to the Saddam Hussein
regime.

An official from the IGB said today it had cancelled plans to
tender for one million tonnes of US wheat and would now look to
European, Canadian or Australian suppliers instead.

"It has been cancelled because the American prices were too
expensive. First they wanted $US190 ($A257) per tonne then $US200
($A271), which is too high," the official told Reuters.

"We will try to get it from Europe or Canada or other Australian
companies."

The official said Iraq would consider offers from Australian
companies other than AWB. It would launch the tender soon, he said,
giving no specific date.

But there is confusion over who the IGB would deal with in
Australia, as AWB has the monopoly to export wheat.

The Iraqi official said the IGB had 1.2 million tonnes of wheat
reserves, enough to last four months.

The IGB has suspended its relationship with AWB until retired
judge Terence Cole finishes investigating almost $300 million in
kickbacks paid to Saddam's regime under the oil-for-food program in
breach of United Nations sanctions.

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